Investing.com - The dollar remained steady against the other major currencies on Monday, after falling on Friday as data showing that U.S. wage growth slowed sharply in the second quarter tempered expectations for higher interest rates.
EUR/USD was at 1.0982, little changed for the day.
The dollar weakened across the board after official data on Friday showed that the U.S. employment-cost index, a measure of workers’ wages and benefits, rose just 0.2% in the second quarter. It was the smallest quarterly increase since records began in 1982 and was well below economists’ expectations of a 0.6% increase.
The unexpectedly weak data prompted investors to push back expectations on the timing of an initial hike in short term interest rates.
The dollar gained ground against the yen, with USD/JPY rising 0.18% to 124.07.
The dollar received a boost after weak Chinese factory data on Monday added to concerns over a slowdown in the world’s second-largest economy.
The final reading of the Caixin/Markit China manufacturing purchasing managers' index fell to 47.8 in July, the lowest since July 2013, from 49.4 in June. It was the fifth straight month of contraction.
Investors were also turning their attention to the Institute of Supply Management’s report on U.S. manufacturing activity due out later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was firm at 97.35.